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Lawrence: Welcome to the Federal
Workforce Roundup 8-14 June 2025, your

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essential weekly briefing on the policies
and proposals shaping your career,

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your benefits, and your retirement.

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Whether you’re a current federal employee
navigating changes in the civil service,

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or a retiree keeping a close watch on your
hard-earned pension and healthcare, this

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is your source for the latest news from
Capitol Hill and the executive branch.

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Each week, we cut through the noise to
bring you the critical updates on budget

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negotiations, pay raises, workforce
policies, and the legislative battles that

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directly impact the federal community.

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Let's get you up to speed
on what happened this week.

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Issues That Affect Current
and Retired Federal Workers

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Budget Reconciliation and Retirement
Benefits: A major budget package,

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the One Big, Beautiful Bill Act (H.R.

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1), is advancing through Congress
with provisions targeting

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federal employee benefits

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. The House narrowly passed H.R.

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1 on May 22, and Senate committees
unveiled their draft on June 12

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. Notably, proposals that would directly
cut already-earned retirement benefits

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have been softened in the latest version.

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For example, the House’s initial
plans to shift pension calculations

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from a “high-3” to “high-5” salary
average and to raise all current

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employees’ pension contributions to 4.4%

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were removed before final House passage

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. Likewise, the Senate draft dropped the
House’s provision to eliminate the FERS

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annuity supplement (a Social Security
bridge for those retiring before 62)

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. Federal retiree advocates welcomed
this retreat – as NARFE’s John Hatton

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noted, lawmakers should not “cut
back on vested benefits that are

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based on earnings from previous work”

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. However, other long-term
changes remain on the table.

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Both House and Senate versions
would require newly hired federal

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employees to pay significantly more
toward their pensions if they want

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to retain civil service protections.

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Under the Senate plan, new
hires must contribute 9.4%

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of pay to FERS, or a steep 14.4%

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if they opt to keep their
Title 5 job protections

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. This two-tier choice – essentially
“pay extra for your rights or become

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at-will” – has alarmed observers who say
it could undermine the entire retirement

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system’s viability for the next generation

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. NARFE warns that forcing exorbitant
contributions could make the

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benefit “not even a bang for
your buck,” discouraging younger

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employees from staying in the system

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. Health and Legal Protections: Other
provisions in the reconciliation package

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affect both current workers and retirees.

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One item would impose a $350 fee for
appeals to the Merit Systems Protection

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Board (MSPB), payable by employees,
former employees, or applicants

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who challenge personnel actions

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. (The fee would be refunded
if the appellant wins.)

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This aims to deter frivolous cases
but has drawn fire from employee

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groups as a barrier to due process.

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Another section requires agencies
to audit Federal Employees Health

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Benefits (FEHB) enrollments to
remove ineligible family members

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. Unlike the benefit cuts, this
FEHB audit idea has seen little

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opposition – with GAO estimating
nearly $1 billion per year is spent on

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ineligible dependents’ health coverage

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. Audits would apply to all enrollees’
family plans, meaning current

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workers and retirees could be asked
to verify dependents’ eligibility.

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No immediate changes to core FEHB
benefits or premiums are proposed,

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but tighter enforcement could affect
those covering spouses or children

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who don’t meet eligibility rules.

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Legislative Status: As of June
14, the Senate Homeland Security

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and Governmental Affairs Committee
was marking up its portion of the

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bill, eyeing a July 4 deadline to
finalize the reconciliation package

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. If the Senate passes a version,
negotiations with the House will follow.

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Federal unions and retiree groups are
lobbying intensely during this window.

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They achieved some success in getting
certain benefit cuts removed – for

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instance, the “high-5” pension
formula change was struck from the

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House bill after bipartisan pushback

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. But they remain vehemently
opposed to what remains.

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“This so-called reconciliation bill is
in fact a big retaliation bill,” said

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AFGE President Everett Kelley, “a direct
assault on federal employees and their

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labor unions” that would slash take-home
pay and obliterate workplace rights

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. NARFE President William Shackelford vowed
“to keep fighting until all of this bill’s

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onerous provisions directed at federal
employees and retirees are removed”

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. In sum, both current employees
and retirees have a stake in this

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fast-moving budget legislation – it
carries long-term implications for

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pension formulas, early retirement
supplements, and the merit system itself.

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Issues That Affect Current Federal Workers

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Civil Service Protections and
Workforce Rights: The ongoing budget

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reconciliation fight has particularly
high stakes for current federal

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employees’ working conditions.

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Provisions in H.R.

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1 would fundamentally alter the
civil service framework for new

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hires – effectively introducing
an at-will employment system.

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Under the Senate’s draft, all new
federal hires would be hired as

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at-will unless they pay an extra 5%
of salary into FERS (on top of an

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already higher base contribution)

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. Choosing not to pay means surrendering
civil service due process rights and

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being terminable “for good cause,
bad cause, or no cause at all.”

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Employee groups argue this is a
backdoor way to revive “Schedule

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F”-style political purges.

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Rep.

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Stephen Lynch (D-MA) called the
plan a “backdoor” for Schedule F

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that would enable partisan mass
firings of nonpartisan staff

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. NARFE likewise warned it sets a dangerous
precedent by taxing those who retain merit

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protections – essentially a 5% pay penalty
– and could discourage agency talent

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. Unions are uniformly opposed.

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AFGE’s Kelley said the plan would
“make it that much harder for agencies

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to recruit and retain qualified
employees” by stripping workplace rights

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. The American Federation of Government
Employees (AFGE), National Treasury

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Employees Union (NTEU), and others
also blasted a suite of anti-union

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measures folded into the Senate bill.

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These include a 10% surcharge on union
dues paid via payroll deduction and a

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mandate that unions reimburse agencies
for official time (hours spent on

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representational duties) or face debarment

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. NTEU President Doreen Greenwald described
such proposals as “punitive…union-busting”

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– noting they would “slash the take-home pay
for newly hired civil servants” without

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improving benefits, while hampering
unions’ ability to represent workers

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. In sum, current federal employees
face a potential future where new

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colleagues have fewer rights and
unions are financially squeezed.

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Executive Actions on Firing
and Reorganization: Outside of

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Congress, the executive branch is
pursuing its own workforce reforms.

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The Office of Personnel Management
(OPM) issued a proposed rule on June

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2 to expedite removals of federal
employees for “suitability” issues (e.g.

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misconduct or failing to
meet background standards).

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The rule – titled “Improving Performance,
Accountability and Responsiveness in the

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Civil Service” – would allow agencies
to fire employees who no longer meet

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requirements in as little as 5 working
days, with greatly limited appeal rights

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. OPM plans to apply to current
employees the same rigorous

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suitability adjudications that
previously applied only to new hires

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. This means a worker deemed “unsuitable”
could be terminated almost immediately,

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with MSPB jurisdiction curtailed.

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The Trump administration argues this will
rid agencies of problem employees faster.

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However, federal employee
advocates strongly object.

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NARFE submitted formal comments on
June 6 opposing the rule, arguing

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it would “pave the way for this and
future administrations to remove

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competent, nonpartisan civil servants
and replace them with political cronies”

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. In other words, critics see it as
an attempt to erode 140 years of

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merit-based civil service protections
by making career staff easier to

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dismiss for subjective reasons.

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This controversy echoes the broader
theme of the budget bill’s at-will

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employment provisions – together
signaling a significant shift in how

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secure a federal career might be.

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Meanwhile, Congress is weighing
a dramatic expansion of executive

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authority to reshape agencies.

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The Senate HSGAC’s draft would give the
President broad, fast-track powers to

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reorganize and downsize federal agencies.

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It earmarks $100 million for the
Office of Management and Budget (OMB)

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to implement agency restructuring
plans over the next decade

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. Critically, the bill would exempt
the President from many current laws

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that require congressional approval
for reorgs, allowing sweeping

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changes “without obstruction”
from Congress or even the courts

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. This comes as the administration has
faced legal injunctions blocking its

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agency reductions-in-force (RIFs).

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(Federal courts recently enjoined agencies
from carrying out RIFs and reorgs that

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lacked explicit congressional sign-off

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. Lawmakers are effectively debating whether
to override those court orders by statute.

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A federal judge warned on June 9 that
her injunction against unilateral

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agency cuts will stand, but “whatever
Congress says can happen going forward,

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can happen” – “all bets are off” if
lawmakers authorize the reductions

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. If enacted, this would mark the
return of authority not seen since

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the 1980s, when presidents last had
carte blanche reorganization power

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. For current feds, it could translate
to accelerated agency consolidations or

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closures and the elimination of positions
with minimal congressional oversight.

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The bill even encourages workforce
slimming by establishing a “bonuses for

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cost-cutters” program – offering cash
awards up to $10,000 to employees who

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identify wasteful spending that gets cut

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. While incentivizing thrift,
the overarching aim is clearly

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a leaner federal workforce.

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Mass Layoffs and Agency Funding Battles:
Federal employees are also confronting

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the reality of agency-level job cuts.

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This week saw moves in the House
Appropriations Committee to green-light

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deep workforce reductions at two of
the government’s largest departments.

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On June 12, a House panel approved
the FY2026 Defense spending bill with

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funding trims corresponding to the
Pentagon’s plan to eliminate ~45,000

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civilian jobs (about a 5–8% cut)

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. The same day, in drafting the VA’s budget,
House Republicans rejected an amendment to

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halt the Department of Veterans Affairs’
plan to fire around 80,000 employees

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. That VA downsizing – aimed at returning
to 2019 staffing levels – is part

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of an aggressive reorg that the
VA, with help from the Department

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of Government Efficiency, intends
to carry out by the end of summer.

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Veterans’ groups and unions have
decried the cuts as harmful to veteran

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services, and Democrats call it a
betrayal of promises to veterans

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. Nonetheless, the House’s draft
VA appropriations bill did not

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intervene to stop the layoffs.

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In effect, lawmakers signaled support
for the administration’s workforce

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reduction agenda at VA and DoD.

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The message to current federal
workers is sobering: thousands

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of positions are on the chopping
block as agencies “streamline.”

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AFGE, which represents 311,000
VA employees, warns that veterans

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and the public will “suffer
unnecessarily” from these cuts

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. But VA leadership, backed by the
White House, asserts that the

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government’s purpose is to serve
citizens, not to employ people – even

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if that means painful decisions

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. Expect continued debate as these
spending bills advance, but for now,

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Congress is largely aligning with the
push to shrink the federal workforce.

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Pay and Benefits Updates: Amid
these challenges, there was

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at least some focus on pay.

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The White House’s budget outline
for FY2026 proposed no general pay

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increase for civilian federal employees
, effectively a pay freeze next year.

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This is part of $163 billion in
proposed spending cuts that unions

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say will “destroy government” services

00:12:47.471 --> 00:12:51.161
. In response, lawmakers have introduced
the Federal Adjustment of Income Rates

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(FAIR) Act, which NTEU and other unions
endorse, calling for an average 4.3%

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pay raise in 2026 for federal workers

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. The FAIR Act represents the workforce’s
hope to keep salaries competitive as

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inflation and private-sector wages rise.

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It’s still early in the budget process,
and ultimately Congress will set the

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pay raise (if any) later this year.

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On a positive note for employees, military
service members are slated for a 3.8%

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raise in 2026, and House appropriators
indicated civilian pay might be

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revisited once full budget details arrive

00:13:28.777 --> 00:13:31.977
. Additionally, some unions are
securing wins through bargaining.

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This week, one of the Postal unions
– the National Rural Letter Carriers’

00:13:36.337 --> 00:13:40.997
Association (NRLCA) – ratified a new
collective bargaining agreement through

00:13:40.997 --> 00:13:47.217
May 2027, with annual wage increases
and semiannual COLAs for rural carriers

00:13:47.867 --> 00:13:52.057
. The American Postal Workers Union
(APWU) also mailed out ballots

00:13:52.057 --> 00:13:56.027
for its tentative 3-year contract,
touting no-layoff protections and

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multiple pay improvements achieved
even in today’s challenging climate

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. These developments don’t apply to
most federal employees directly

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(since USPS has separate labor
agreements), but they show unions

00:14:08.501 --> 00:14:10.821
still negotiating hard-fought gains.

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In summary, current federal workers face
a wave of changes – from legislation that

00:14:16.541 --> 00:14:20.731
could alter their rights and retirement
prospects, to executive efforts to

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speed up firings, to budget-driven
job cuts – all while fighting for

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fair pay and maintaining the ability
to serve the public effectively.

00:14:30.113 --> 00:14:32.713
Issues That Affect Retired Federal Workers

00:14:33.345 --> 00:14:37.585
Social Security Windfall Elimination
Provision (WEP) and GPO Repeal:

00:14:38.255 --> 00:14:42.235
Retired federal employees received
momentous news earlier this year,

00:14:42.265 --> 00:14:43.935
and updates continued this week.

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In January, President Biden signed the
Social Security Fairness Act into law,

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which repealed the Windfall Elimination
Provision (WEP) and Government Pension

00:14:52.885 --> 00:14:56.405
Offset (GPO) effective January 2025

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. WEP and GPO had long reduced
Social Security benefits for many

00:15:00.681 --> 00:15:04.891
federal retirees – particularly
CSRS pensioners with some Social

00:15:04.891 --> 00:15:09.071
Security credits, and those receiving
spousal Social Security benefits.

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The repeal means retirees affected
by those provisions are now entitled

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to full benefits going forward.

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By late February and March, the Social
Security Administration (SSA) had adjusted

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most beneficiaries’ accounts, issuing
retroactive payments to compensate

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for January’s higher benefit amounts

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. During the week of June 8–14,
SSA provided a fresh update

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on the WEP/GPO implementation.

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In a communication on June 9, SSA
outlined what retirees should expect:

00:15:40.511 --> 00:15:44.141
when increased payments will arrive,
how Medicare Part B premiums deducted

00:15:44.141 --> 00:15:48.171
from Social Security will be handled,
tips to avoid scams, and information

00:15:48.171 --> 00:15:49.841
on any back payments still due

00:15:50.469 --> 00:15:53.869
. This update is important for federal
annuitants (and their survivors)

00:15:54.099 --> 00:15:57.689
to understand the practicalities of
their new Social Security benefits.

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Not everyone has found the
process seamless – NARFE has

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pressed SSA to extend retroactive
payouts to all who are entitled.

00:16:07.289 --> 00:16:11.149
The agency currently uses a six-month
“lookback” for GPO applicants,

00:16:11.469 --> 00:16:13.429
which NARFE argues is insufficient.

00:16:14.269 --> 00:16:18.469
Many widows/widowers never applied for
Social Security due to GPO reducing it to

00:16:18.469 --> 00:16:23.449
zero dollars, and NARFE’s June 6 letter
urges that they should receive full back

00:16:23.449 --> 00:16:26.029
benefits regardless of when they now apply

00:16:26.671 --> 00:16:31.301
. This advocacy is ongoing, but the
bottom line is that federal retirees

00:16:31.301 --> 00:16:35.731
are finally seeing relief from WEP
and GPO, correcting what NARFE and

00:16:35.731 --> 00:16:40.611
bipartisan supporters long saw as
unfair penalties on earned benefits.

00:16:41.451 --> 00:16:45.701
Federal Pension and COLA Protections:
Apart from Social Security, retired

00:16:45.701 --> 00:16:49.081
feds have kept a close eye on
the budget proposals because some

00:16:49.081 --> 00:16:51.161
provisions could indirectly affect them.

00:16:51.201 --> 00:16:54.921
The House’s reconciliation bill initially
threatened to change how federal

00:16:54.921 --> 00:17:00.341
pensions are calculated (the high-5 vs
high-3 issue) and to eliminate the FERS

00:17:00.341 --> 00:17:02.711
annuity supplement for future retirees

00:17:03.373 --> 00:17:08.233
. As noted, those specific cuts are not
in the current Senate draft , thanks

00:17:08.233 --> 00:17:10.083
in part to vigorous opposition.

00:17:10.493 --> 00:17:13.433
Had they advanced, they would
have reduced the annuities of

00:17:13.433 --> 00:17:17.913
future retirees (and possibly
even some recently retired folks).

00:17:18.373 --> 00:17:22.883
For example, moving to a high-5 average
salary would generally lower one’s

00:17:22.883 --> 00:17:27.173
computed pension – potentially costing
thousands over a retirement for those

00:17:27.173 --> 00:17:29.183
who peaked in their final three years

00:17:29.889 --> 00:17:35.209
. Eliminating the FERS supplement starting
in 2028 would have hit any FERS employees

00:17:35.209 --> 00:17:40.789
who retire before age 62, shrinking their
income until Social Security kicks in

00:17:41.453 --> 00:17:45.063
. "This bill would claw back part
of the value of vested retirement

00:17:45.063 --> 00:17:49.303
benefits via elimination of the FERS
supplement,” warned NARFE President

00:17:49.303 --> 00:17:53.393
Shackelford, who also noted it
could even retroactively hurt those

00:17:53.393 --> 00:17:55.853
taking early-outs in ongoing RIFs

00:17:56.607 --> 00:18:01.507
. Fortunately for current retirees, those
changes appear stalled for now – and

00:18:01.507 --> 00:18:06.487
anyone already retired or eligible for
the supplement before 2028 would be

00:18:06.487 --> 00:18:08.807
grandfathered under the House’s plan

00:18:09.563 --> 00:18:13.953
. Nonetheless, NARFE and other retiree
advocates remain on high alert.

00:18:14.413 --> 00:18:18.203
They have been rallying retirees to
contact Senators and express strong

00:18:18.203 --> 00:18:20.483
opposition to any benefit cuts.

00:18:20.993 --> 00:18:25.343
With the slim margins in Congress,
even a few lawmakers changing stance

00:18:25.583 --> 00:18:27.483
could protect retirees’ pensions.

00:18:28.073 --> 00:18:31.793
The message from advocacy groups is
that retired federal workers earned

00:18:31.793 --> 00:18:35.243
their benefits over decades of
service, and balancing budgets should

00:18:35.243 --> 00:18:38.583
not come at the expense of those
earned pensions and health benefits.

00:18:40.043 --> 00:18:45.003
Healthcare and Other Benefits: Retired
Feds share the FEHB health insurance

00:18:45.003 --> 00:18:49.943
program with current employees, so the
aforementioned FEHB dependent audit

00:18:49.943 --> 00:18:51.863
initiative will include annuitants.

00:18:52.473 --> 00:18:56.563
While removing ineligible individuals
(like ex-spouses who should have been

00:18:56.563 --> 00:19:01.153
taken off a family plan) is aimed at
cost savings , annuitants should be

00:19:01.153 --> 00:19:05.493
prepared to verify the status of covered
family members during periodic audits.

00:19:06.313 --> 00:19:09.503
On the bright side, there were
no proposals to increase FEHB

00:19:09.503 --> 00:19:13.253
premiums for retirees or to
limit plan choices this week.

00:19:13.913 --> 00:19:18.303
Likewise, the budget proposals do not
target cost-of-living adjustments (COLAs)

00:19:18.303 --> 00:19:22.403
for federal pensions – a relief, given
that inflation has been a concern.

00:19:22.763 --> 00:19:26.393
In fact, retirees under CSRS
and FERS received substantial

00:19:26.393 --> 00:19:29.053
COLAs in January 2025 (8.7%

00:19:29.053 --> 00:19:32.043
for CSRS, 7.7%

00:19:32.043 --> 00:19:35.823
for FERS), and mid-year data suggest
another significant COLA could be

00:19:35.823 --> 00:19:39.773
on the horizon for 2026 if inflation
persists (though final numbers

00:19:39.773 --> 00:19:41.323
won’t be known until the fall).

00:19:42.223 --> 00:19:47.233
Notably, those COLAs were granted in full
despite the administration’s cost-cutting

00:19:47.233 --> 00:19:51.943
environment – a sign that retiree COLAs
remain politically sensitive to alter.

00:19:52.623 --> 00:19:56.493
One small COLA-related update:
individuals on the Federal Employees

00:19:56.493 --> 00:20:00.443
Compensation Act (FECA) rolls
(injured employees) got a 2.8%

00:20:00.443 --> 00:20:05.463
COLA in April 2025 , which is separate
from the pension COLA but of interest

00:20:05.463 --> 00:20:07.593
to some disabled federal retirees.

00:20:08.583 --> 00:20:13.173
OPM Retirement Services Modernization:
A quieter but impactful development for

00:20:13.173 --> 00:20:18.713
future retirees is OPM’s push to modernize
the retirement application process.

00:20:19.273 --> 00:20:23.313
OPM announced it is transitioning to
fully digital retirement processing,

00:20:23.463 --> 00:20:27.503
moving away from the old paper-based
system that often caused delays

00:20:28.083 --> 00:20:33.833
. As of June 2, 2025, federal agencies must
submit new retirement applications and

00:20:33.833 --> 00:20:38.593
documentation electronically to OPM’s
new online system, with paper submissions

00:20:38.593 --> 00:20:42.143
no longer accepted after July 15, 2025

00:20:42.855 --> 00:20:47.105
. OPM’s goal is to streamline and speed
up pension adjudication – currently a

00:20:47.105 --> 00:20:52.305
notoriously lengthy process averaging
3–5 months or more for new retirees.

00:20:52.975 --> 00:20:57.175
The agency acknowledged that antiquated,
fragmented systems have led to errors and

00:20:57.175 --> 00:21:02.555
backlogs, and stated that the new digital
system will “fully address” these problems

00:21:03.251 --> 00:21:07.761
. NARFE, which has long advocated for
such modernization, welcomed this move.

00:21:08.471 --> 00:21:12.591
If the online retirement application
(ORA) works as intended, it should

00:21:12.591 --> 00:21:16.691
reduce the waiting time for retirees
to receive their full annuity payments

00:21:17.367 --> 00:21:21.867
. However, OPM will need to prove it can
implement the technology effectively.

00:21:22.327 --> 00:21:26.557
Retirees and near-retirees should ensure
their agencies are prepared to use the

00:21:26.557 --> 00:21:30.957
new system and that their records are
accurate in the electronic pipeline.

00:21:31.377 --> 00:21:35.477
The coming months will reveal whether this
innovation lives up to its promise of a

00:21:35.477 --> 00:21:38.097
smoother retirement claims experience.

00:21:39.097 --> 00:21:43.457
Retiree Advocacy and Outlook:
Retired federal employees, through

00:21:43.457 --> 00:21:47.327
organizations like NARFE, remain
deeply engaged in all these issues.

00:21:47.967 --> 00:21:51.547
They recognize that today’s policy
changes – whether it’s the budget cuts to

00:21:51.547 --> 00:21:56.307
agencies, civil service rules, or benefits
tweaks – can affect the stability of their

00:21:56.307 --> 00:21:58.767
retirement and the services they rely on.

00:21:59.567 --> 00:22:04.147
The good news is that retiree advocacy
has shown results: the full repeal

00:22:04.147 --> 00:22:08.817
of WEP/GPO after decades of effort
is a prime example of a victory

00:22:10.091 --> 00:22:14.751
. Additionally, the removal of the high-5
pension formula proposal and preservation

00:22:14.751 --> 00:22:19.221
of COLAs demonstrate that retiree
voices are being heard in the process

00:22:20.673 --> 00:22:23.683
. Going forward, retirees will
watch the final stages of the

00:22:23.683 --> 00:22:26.053
budget reconciliation like hawks.

00:22:26.553 --> 00:22:30.633
Any conference compromise will need
to be scrutinized for impact on FEHB,

00:22:30.783 --> 00:22:32.903
pensions, and other earned benefits.

00:22:33.413 --> 00:22:38.353
NARFE has encouraged its members (many of
whom are retirees) to continue contacting

00:22:38.353 --> 00:22:40.703
legislators while the Senate deliberates

00:22:41.375 --> 00:22:45.265
. In the words of NARFE’s advocacy
team, “NOW is the time to act.”

00:22:45.755 --> 00:22:50.245
Retirees are also allied with active
employees in this fight – after

00:22:50.245 --> 00:22:54.305
all, protecting the civil service
and its benefits today ensures the

00:22:54.305 --> 00:22:56.565
value of federal retirement tomorrow.

00:22:57.175 --> 00:23:01.285
As this week’s news shows, whether it’s
securing a long-sought Social Security

00:23:01.285 --> 00:23:06.165
fix or heading off a cut to pensions,
staying informed and engaged is paying

00:23:06.165 --> 00:23:08.425
off for the federal retiree community.

00:23:09.071 --> 00:23:12.281
And that’s a wrap on this week’s
Federal Workforce Roundup.

00:23:13.301 --> 00:23:17.371
The landscape for federal employees
and retirees is constantly shifting,

00:23:17.801 --> 00:23:21.971
with major decisions being made about
everything from pay and job security

00:23:22.191 --> 00:23:26.091
to retirement benefits and the very
structure of the civil service.

00:23:26.891 --> 00:23:28.871
Staying informed is your best tool.

00:23:29.351 --> 00:23:33.631
Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

00:23:34.205 --> 00:23:35.305
Thanks for tuning in.

00:23:35.305 --> 00:23:38.105
We’ll be back next week to
track the latest developments

00:23:38.355 --> 00:23:39.775
and what they mean for you.

00:23:40.145 --> 00:23:43.135
Until then, stay engaged and be well.